The USD/JPY pair rose during the session and close of the very highs of the range as we continue to see significant support right around the 81.50 level in this market. However, the 82.50 level continues offer resistance, so we have to question whether or not we can break out from here. Any move above the 83 handle should open the door to 84, and 84 will open the door to much, much higher levels. In fact, this is our base case scenario, and we think that anytime this pair pulls back, you should be looking for support in order to buy again. The longer-term trend is seems to be changing, and this is never an overnight thing. However, we feel that three years from now you will be able to say “if I had only bought this pair down there around the 82.” Because of this, we are willing to be very patient with our various long positions.
Written by FX Empire